Reliance Group Expected
To Unveil Sale of Surety Unit

Reliance Group Holdings Inc. is expected to announce as early as Monday that Travelers Property Casualty Corp. has agreed to buy its Reliance Surety unit for more than $550 million.

The deal, which will be announced along with Reliance's fourth-quarter earnings, will go a long way toward easing the pressure that has been plaguing the New York-based commercial insurer. The company since late last year has faced the threat of a ratings downgrade due to competitive market conditions, a decrease in its insurance surplus and a...